Earlier this month, UK start-up bank Mondo ran a two-day debut ‘hackathon’ centred on an early iteration of its Application Programme Interface (API). The new bank operates via a mobile app that is designed around the needs of the customer and not systems created by traditional banks.

Mondo is one of a number of tech-savvy banking start-ups looking to disrupt the market for financial services in the UK. The neo-bank is building its software from scratch, developing a prototype mobile app and linked card to simplify account management and budgeting in real-time.

Mondo is currently in a testing phase and will be releasing around 500 pre-paid debit cards that can be controlled from the app in October. It hopes to get its full banking licence at the start of next year and launch a current account shortly afterwards.

As a spokesman for the start-up says, Mondo is aimed at people who live their lives on their iPhones. He believes that their typical customer will be the sort of person who wants to be able to do everything in five seconds in just one click.

Unlike traditional banks, Mondo will have no branches and won’t issue customers with a cheque book, so as the spokesman says, it won’t be for everyone. However, users will be able to see at a glance how much they are spending and whether their spending pattern changes over a month. Most importantly, if the app picks up that the customer has run out of money, it will ask if he or she would like a short-term overdraft at an average APR of 19.9% – around 75p on £200. For people with cashflow problems, this could be a lifesaver.